Nalco gets notice for non-execution of Panchpatmali mine

The Orissa government has sent a show cause notice to National Aluminium Company (Nalco), a Navratna public sector unit, on the non-commencement of work at the company’s Panchpatmali bauxite mine in Koraput district which has been not been operational since 2009.

The company has been asked to reply to the show cause notice within one month.

While issuing this notice, the government, however, has allowed the company three months time to furnish certain documents for consideration of their RML (renewal of mining lease) application for the mine which were missing in their earlier RML application.

“The lessee company has not elaborated as to why they have not filed application to the state government seeking relief justifying reasons of non-commencement of mining operation within a period of two years from the date of execution of the lease. It is therefore, noticed to show cause within a period of one month as to why the aforesaid RML application will not be rejected”, the letter from the office of the Under Secretary in the department of steel and mines, Orissa government, to Nalco said.

According to Koraput Collector’s report, excavation activity in the Panchpatmali bauxite mine under Pottangi tahasil has not taken place since October 15, 2009.

Nalco had received final forest clearances for this mine in July this year and had applied for other clearances from the state government for renewal of the mining lease.

The original lease period in the Panchpatmali South Block had expired in June 2009 after 30 years of mining. The hilltop bauxite mine has a total deposit of 310 million tonne, out of which 140 million tonne of bauxite had already been exploited.